shell company

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Shell Corporation

A company that exists as a vehicle for transactions without any independent activities or assets. Shell corporations are formed sometimes to obtain financing before they begin operations, or after a bankruptcy and business has ceased. They are also used in tax avoidance and tax evasion schemes: for example, companies may set up shell subsidiaries in tax havens and hide profits in them. See also: Reverse acquisition.

shell company

a company whose shares are currently listed on the STOCK MARKET but which is not actively trading. The share prices of such companies are generally very low and they may offer an attractive means for a business without a stock-market listing to acquire one by TAKEOVER.

shell company

a company that is not actively trading but that is still listed on the STOCK EXCHANGE. Such a company can be purchased in a REVERSE TAKEOVER by a company wishing to obtain a stock-exchange listing.
References in periodicals archive ?
Many of the shell companies searched had huge financial transactions with Choksi's Gitanjali Gems Ltd and Gili India Ltd though they had insignificant businesses.
Figuring out who owns these shell companies has been a long-running challenge.
Regulators are concerned that influential people and families could be using shell companies to hide their wealth.
Some more details have been asked so that we can get refined data about shell companies," the official added.
The MoS (Corporate Affairs) Shri Chaudhary said that as a result of the exercise of weeding out shell companies, it would not only help in checking the menace of black money but also would promote an ecosystem of Ease of Doing Business and enhancing investors confidence to which the present Government is fully committed.
The I- T department has been analysing financial transactions of the shell companies, which were used to route money to acquire alleged illegal properties.
Although the summit failed to deliver on the big prize of getting the UK's various overseas territories and crown dependencies, along with the US state of Delaware, to agree to publish their own registers of shell companies, the wheels have been turning on identifying shell companies for many months.
Meanwhile, the Extractive Industry Transparency Initiative (EITI) has promised to set out plans for its 51 member countries--20 of whom are in sub-Saharan Africa--to publish public registers detailing the owners of mining, gas and petroleum shell companies by January 2017.
This Week revealed the document mentions the countries in which the shell companies were based.
The papers, shared by the International Consortium of Investigative Journalists with a number of other media outlets earlier in April, documented 40 years' worth of records of Panamanian law firm Mossack Fonseca, which showed widespread use of tax havens and shell companies by wealthy global elites to hold their assets offshore.
Shell companies hide identities of foreign billionaires buying New York condos, drive up prices, undermine US efforts on stem tax evasion with overseas accounts
He and his associates are said to have set up a network of shell companies to perpetrate the fraud.